NFT Games What are Play-To-Earn video games and how do they work?

Among the many recently emerged methods of generating profits online, one of the most recent and fastest growing has been NFT games, which have become enormously popular due to the great potential they have.

To date, there have been a lot of games that work under the NFT or PTE (Play To Earn) modeand there are not a few people who have been able to generate considerable income by this means, although it has more complications than it seems at first glance.

In the next few paragraphs, we will teach you everything you need to know about this kind of gamesfrom the criteria you should look for to select the right game, to the signs you should pay attention to in order to spot any scams.

What is an NFT game?

This class of games is characterized by a part of itself is generated by means of a blockchain, which creates collectible and unique items from each game, which makes them valuable within the context of the game. An NFT is a Non-Fungible Tokenwhich is created through blockchain technology making it a unique and original item, which cannot be replicated. In games, these items can be consumables, characters, weapons and items, etc.

The appeal of these tokens is their uniqueness within the game world, so you can offer your items to other players, and sell them for a considerable amount of moneydepending on the NTF per se. For these transactions, you must ensure that you have a secure electronic wallet.

What is Play to Earn?

The term “Play-to-earn” applies to video games that reward players with actual monetary compensation for playing the game, or for performing certain actions within the game. In general, this monetary reward comes from items obtained within the game through blockchain technology, which gives them a real value, which can explode in different ways depending on the mechanics that the game offers for it.

Where does the money that is earned playing NFT games come from?

NFT games generate money using similar mechanics to cryptocurrencies. They use technology blockchain for create an item that becomes a digital asset within the gameand which you can sell in exchange for a sum of real money, which varies depending on the demand for the object in question.

Is NFT Games a Pyramid Scheme or Ponzi Scheme?

In the strictest sense of the ponzi scheme concept, NFT games can certainly fall into this category. This is because, obviously, money investments made by users reach the creators of the gamegenerating substantial profits for the latter.

With this in mind, NFT games can be considered one of the few pyramids that are not safe money losers, as there is a record of users who have generated thousands of euros in this way. The truth is that these games work like a pyramid in the sense that the new investors are the ones who feed those who are above them is the pyramidand as long as there are new investors, the game will be profitable.

But as soon as the flow of new players starts to wane, the game starts to lose value, and the most recent ones will start losing money. So the best advice you can get if you are thinking of investing in games NFT is: analyze and study the project before starting to put money into the game.

How do NFT games work?

The NFT games have different mechanics that suit the purpose of the game. The NFTs that are created in these games can take different forms, from character cards to consumable items.

Each game is designed with a purpose in mind, and over the course of the game’s events, as you accomplish objectives, You can acquire these items and improve them to increase their value. There are also certain games that, instead of items, they pay the user with tokens for fulfilling certain missions. In summary, the number of methods to generate profits through NFT games is quite large, and varies greatly from one game to another.

Benefits of blockchain games

Yes ok many cases can represent certain difficulties for some playersthe truth is NFT games have many advantages that are inherent in the nature of how blockchain technology works.

Among the greatest advantages of blockchain gaming we have the following:

• Decentralization and security: Due to the nature of blockchain technology, games exist with a decentralized and immutable registry, which means that the items obtained are registered under the inviolable property of the user who obtains or buys them.
• Economy: properly analyzed NTF games can generate a respectable return on investment.
• Exchange of goods: is the central point of most NFT games. Blockchain technology makes sure that these goods are unique, rare, and actually belong to users.
• Low risk of fraud: games that apply blockchain technology to their generated items have a very low risk of fraud, since any transfer of ownership is publicly recorded by the blockchain.
• Access to cryptocurrencies: In addition to non-fungible items, NFT games provide their users with access to cryptocurrencies that, in addition to being a form of payment, serve as a reward for the player’s efforts in the game’s missions.

How to choose an NFT game to earn money?

Some might consider investing in an NFT game as a gamble, because if it is not done correctly it has a huge potential for loss. However, it doesn’t have to be a gamble, as there are factors you can look at to determine if an NFT is worth it.

Here are some tips for this:

Project

The project of an NFT game is the first thing you should pay attention to, because they are the public bases of what the game will be. Even from such an early stage you will be able to get very valuable information about the viability of the game.

At this stage, it is where the developers give a description and a synopsis of what the game will be, its history and its game modes. Although it is a somewhat early stage to decide whether or not it is a project that deserves your attention, offers enough information to know if you should keep an eye on the project.

Economic model of the project

This is a determining factor in the decision process of the game, which must be be included in your White Paper. The economic model is the main reason why most players and investors end up buying NFT games. Basically, you must stipulate the method in which the game tokens are obtained, the type of token, the amount of method to obtain it, the rate of acquisition of the same. All these points are determining factors in deciding whether or not to invest in a game. blockchain.

developers

The game developers appear as the faces of the gamewhich can quickly determine the reliability of a game. A developer with a high profile and a good reputation is able to attract a considerable number of investors to a game.

Although developers may be specialized in different branchesthose who have performed efficiently in their respective fields and join together with other experts for the development of a game can, by their very presence, greatly increase the investment potential in a game.

Project sponsors

Of similar way to developers, see well-known brands and companies sponsoring a project for a long time because of its image. If high-profile brands offer their vote of confidence in a project through sponsorship, it is highly likely that the game is trustworthy and safe to invest in. There has been a record of a large number of video game and technology companies sponsoring NFT games and players of the same, as is the case of FTX, which carried out sponsorship for players of Axie Infinity.

Compare with similar projects

Once you have some information about the project and its methods to generate moneyit is always a good idea to make comparisons to games with similar themes and mechanics, in order to compare their sustainability.

Although most games are released in similar time frames, there are already games that have been around long enough to serve as a point of comparison for future projects. Similarly, when entering already established games, you can search the history of the game to analyze its performanceas well as that of similar games in the same period in order to determine the winning potential of the same.

Long-term sustainability

This is the defining factor for many investors, and it is that most expect that the profits generated by the juice can be sustained over time. The reality is that the sustainability of a game is a factor that depends on a large number of variables.

For example, a sudden drop in the flow of investors from the game can have repercussions on profits. However, the greatest term of risk is the period before recovering the initial investment. Once it has recovered, all that is received is profit.

How to know if an NFT game is SCAM?

The chances of an NFT game ending up as a scam are alarmingly highso it is essential that we know how to identify the warning signs that point to a fraudulent blockchain game.

Let’s see below:

anonymous developers

The anonymity of the developers is a clear warning sign that casts doubt on the reliability of any project. In the recent field of NFT games, in any kind of investment project, Developer identification is a key factor in building trust. It should be noted, of course, that the fact that a project comes from an anonymous developer or group does not automatically make it a scam.

There are cases of successful quality blockchain games with anonymous developers, as is the case with Mist, whose token at the end of 2021 was worth €0.13, despite the fact that his team is anonymous. Nevertheless, these situations are an inexhaustible source of distrust for investorsand in most cases, games do not represent a plausible investment, being more likely to generate losses.

unsustainable economy

exist many factors that determine the sustainability of the economy of an NFT game, since although non-fungible game tokens are created using blockchain technology, their price will always be at the mercy of supply and demand within the game.

Added to this, the number of investors is a primary factor in generating profit from the game and, consequently, in the potential of each player to generate income. In short, if too many factors stack up, the value of the token will be reduced to the point that even the minimum investment to actively participate in a game would not be profitable.

Boring game

It is one of the factors that can ruin the career of a blockchain game very earlyand this is because, although The main objective of investors is to generate profits, if they are investing in a game, it is because they seek to generate them in an entertaining way.

Make a game that, as an entertainment medium, does not meet the minimum requirements, offering boring mechanics, simple story or no story at alland few entertaining factors, it is a safe way for few people to venture to invest.

Jobs with unprofessional finishes

In the development section, regardless of whether it is a blockchain game or not, it is important to deliver quality works, visually pleasing to the user, that adapt to a theme and meet the expected visual requirements. In addition, it is necessary to take into account all the technical factors that, when running the game, they can even be detrimental to investors by making them lose money due to development errors.

Token contract issues

Token smart contracts allow planning ahead and automatically execute economic transactions in a consensual manner through the blockchain network. Although this is a great advantage when it comes to facilitating transactions, it is also a potential risk of loss if the contract is not planned correctly.

A error in programming Smart contract can expose vulnerabilities that make it susceptible to cyber attack. Several cases of huge money losses due to breached smart contracts are known.

A token with low utility

The utility of the token is a factor that is closely related to the sustainability of the game economy. This is a factor that can be seen from the previews of the game, taking into account all the factors that can determine the price of a token. Basically, the potential utility of the token can be defined long before the game sees the lightand it is one of the decisive factors from the economic point of view, by which investors can overlook a game.

Best NFT Games You Should Know

Today, there are a lot of NFT games that you can take advantage of to earn money while having fun. Many video game developers have ventured into the field of blockchain games and have generated some very interesting titles.

Among the best current NFT games that you can choose from, we can highlight the following:

• The Sandbox: is a video game created in 2012, and that exploits the Sandbox game genre, in which players can create and modify their own worlds, and giving them total freedom to monetize said worlds through the Ethereum blockchain.
• Thetan Sand: This NFT game of Vietnamese origin stands out in the MOBA genre based on blockchain technology. One of its best features is What is it free-to-earnTherefore, it does not require an initial investment. Their official token is called THG, and you can trade the characters, which are NFTs themselves.
• Ember Sword: is a free to play MMORPG with a large number of users around the world. It uses the Ethereum blockchain technology and one of its biggest attractions is its collectible items that can be created by the players themselves.
• Axie Infinity: It’s one of the Play-to-Earn most successful among the games that use blockchain technology, mainly due to its game proposal and the fact that hundreds of users are generating income. His method of play is to acquire and upgrade creatures, called Axies, which are NFTs themselves, as they are unique and exclusive.
• Plants vs. Undead: it’s a play-to-earn that works under the modality of tower defense. It uses its own cryptocurrency, called PVU, with which you can buy plants in the NFT Marketplace
• MIR4: This MMORPG was released in 2021, and is based on blockchain technology whereby players can generate tokens as they progress through the game, which they can exchange for real money. It has its own minable currency, called “Darksteel”, which can be exchanged for the currency “Draco” which has a value of €6.5.
• Sorare: is a blockchain fantasy football game based on officially licensed digital card competition where you can win prizes on a regular basis. The NFTs in this game are your trading cards and it is currently valued at over €3.6 billion.
• CryptoKitties: is a platformer that follows a similar vein to a popular classic Nintendo DS game, called Nintendogs. Basically, the platform allows you to buy, breed and sell digital kittens, which are the platform’s NFTs, and can only be transferred through ETH payments.
• Alien Worlds: it’s a play-to-earn free, which is about mining the token of the game, called TLM, in which it exists in a cross-blockchain applied to both Ethereum and WAX, making it one of the most accessible currencies through the electronic wallet WAX Cloud Wallet.
• Rain: is an NFT monster card collection game built on the Ethereum blockchain network. Through this game, players will be able to fight and exchange creatures with different particular characteristics.